British Airways and Iberia merge, but few celebrate

By Incorrect Author 16 November 2009

On Friday, British Airways and Iberia announced a long-time-in-the-making merger. Still subject to regulators’ approval, this deal will be, years from now, used in many a B-school as a case study of a perfect defensive merger. There are no aggressive future plans on wresting the market share from nearest rivals, deep cost-cutting is not on the books (only 2.7%, actually) and the two airlines’ corporate cultures, salary bills as well as pension fund obligations couldn’t be further apart. But as they are now, both companies are struggling (BA just posted its biggest loss in history and imposed cost-cutting measures that left unions fuming) and are being viciously attacked by the low-cost carriers, like RyanAir and EasyJet, which serve only the hand-picked, easily profitable routes. The new company will be 55% owned by BA. Read more: BusinessWeek

Gallery

While we have your attention...

An increasingly rare commodity, quality independent journalism costs money - though not nearly as much as its absence.

Every article, every day, is our contribution to Defending Truth in South Africa. If you would like to join us on this mission, you could do much worse than support Daily Maverick's quest by becoming a Maverick Insider.

Click here to become a Maverick Insider and get a closer look at the Truth.


Election 2019

Maimane takes hardline on illegal immigration at DA’s 2019 campaign manifesto launch

By Ferial Haffajee

Canola oil is named such as to remove the "rape" from its origin as rapeseed oil.